Govt Gives Rupee Export Earnings Same Benefits As Dollar And Euro Payments
· Business · Hindustan Times, LiveMint
The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP) 2023 with immediate effect to grant rupee export earnings parity with freely convertible currencies like the US dollar and euro. Eligible exporters receiving payments in Indian rupees through approved banking channels can now claim FTP benefits and count those receipts toward export obligations. The notification aligns FTP provisions with the Reserve Bank of India's Foreign Exchange Management Regulations introduced in 2023. This expansion builds upon the rupee-denominated export settlement facility first launched in November 2022. The change aims to reduce currency-conversion costs and exchange-rate risks while encouraging broader use of the rupee in international trade.
Why it matters
Indian exporters can now settle international trade transactions in rupees without losing out on government export incentives or fulfilling obligations. This policy change lowers currency conversion costs and helps facilitate trade with nations facing foreign exchange shortages.
Read the original report — Hindustan Times
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